According to a study by World Commerce and Contracting, inadequate contract management costs cause businesses to lose 9% of their entire annual income on average. This 9% is made up of missed opportunities during the contract management process, specifically during the contract renewal phase. For the first year of service, for instance, several organizations offer discounted rates of up to 50% off. You’re certain to take advantage of that rise in revenue at renewal if you have the ideal automatic renewal configuration. Because failing to keep track of important contract dates and terms manually could lead to those discounted rates extending and becoming an expensive oversight. Every time a contract is renewed, there is an opportunity to review it and look for ways to cut costs or generate more cash. You may maximize the effectiveness of your contract renewal strategy by using vendor contract management software and by keeping the following advice in mind.

Click here to read: The importance of contract management for your business

Utilize every opportunity for renewal:

Breakthrough performance could suffer if you don’t have enough time to thoroughly analyze the contracts your business plans to renew well before the renewal deadline. The greatest opportunity to negotiate new terms, conditions, and even costs is during a renewal period. It’s equivalent to leaving money on the table if deadlines for contract renewal are not adequately tracked or met. Both client or customer contracts and vendor agreements fall under this. When thinking about client or customer contracts, remember that acquiring a new customer costs 6–7 times more than keeping an existing one. Businesses can increase client retention by 5% while increasing revenue by 25-95%. The company could be capable of providing well-timed pitches aimed at retaining clients and perhaps increasing the value of existing contracts by using contract management software to track impending renewals.

Click here to read: Top 9 contract management practices in the procurement department

Deliver your most powerful negotiating push:

We might seize the opportunity by staying informed about contract renewal dates. Persistence and persuasion will get you far in contract renegotiations, but timing is important. Renegotiations are welcome during the contract renewal period. It is common and even encouraged for there to be a dialogue between the two parties, whether it be about terms or termination. To guarantee that your team has enough time to evaluate contracts strategically, you must use contract management software that keeps track of any date you designate and warns you as early as possible.

Click here to read: 7 Contract management functions you can automate today and secure peace of mind

Automate may reduce the amount of time, money, and hassles:

Recurrent tasks occur throughout the contract lifecycle. In addition to thinking about how to make files and documents accessible to the appropriate people, it’s necessary to maintain track of significant contract dates and milestones. You should also make sure that your team can discover certain elements inside a contract and the frustration a team feels when attempting to control the process. By setting up automated alerts for auto-renewal and termination dates, a secure, cloud-based contract repository with full contract management software capabilities puts you on the fast track to growing renewal revenue.

DocuCollab is the best contract management software for businesses of all sizes and has market-leading capabilities. Use contract renewal strategy to pursue the right customers and vendors who can add value to your business and be a catalyst to sustain its excellence. Click here to learn more.